HB 0667

This bill prohibits exit tolls on New Hampshire's toll roads. It also increases the gasoline tax by $.04 over a 2-year period and allocates the increase to the turnpike system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Exit Tolls Prohibited. Amend RSA 237:11 by inserting after paragraph V the following new paragraph:

VI. No tolls shall be charged for vehicles exiting from the central New Hampshire turnpike, the eastern New Hampshire turnpike or the New Hampshire turnpike system.

2 Gasoline Tax Increased. Amend the introductory paragraph of RSA 260:32 to read as follows:

260:32 Levy of Tolls and Exemptions. There is hereby imposed a road toll of [~~$.18~~] $.20 per gallon upon the sale of each gallon of motor fuel sold by distributors thereof. The road toll shall be collected by the distributor from the purchaser and remitted to the state in the manner hereinafter set forth. Provided, that the road toll shall not apply to:

3 Gasoline Tax Increased. Amend the introductory paragraph of RSA 260:32 to read as follows:

260:32 Levy of Tolls and Exemptions. There is hereby imposed a road toll of [~~$.20~~] $.22 per gallon upon the sale of each gallon of motor fuel sold by distributors thereof. The road toll shall be collected by the distributor from the purchaser and remitted to the state in the manner hereinafter set forth. Provided, that the road toll shall not apply to:

The Department of Transportation (DOT) indicates this bill will decrease state turnpike restricted revenues by $11.754 million in FY 2004, $11.807 million in FY 2005, $12.242 million in FY 2006, and $12.470 million in FY 2007. DOT also indicates that state turnpike restricted expenditures will increase in FY 2004 by $17.315 million, and decrease by $1.990 million in FY 2005, $2.050 million in FY 2006, and $2.111 million in FY 2007. The Department of Safety (DOS) states that state highway fund revenues will increase by $15.9 million in FY 2004 and $31.8 million in FY 2005 and each year thereafter. DOS also states that state highway fund expenditures and local revenues will increase by $1.908 million in FY 2005 and $3.816 million in FY 2006 and each year thereafter. There is no fiscal impact to county and local expenditures or county revenues.

The Department of Transportation states this bill will decrease state turnpike restricted revenues from tolls by the amount that will not be collected due to the cessation of ramp toll collections and due to diversion away from the main line toll plazas. These decreases will be offset by additional revenue generated by the gas tax increase stated in this bill. State expenditures will be reduced annually relative to the cost of toll collection that will no longer be necessary by the elimination of ramp plazas. Also, a one-time plaza removal and exit ramp realignment expenditure will be incurred in FY 2004.

The Department of Safety states this bill will increase the gasoline tax $.02 per gallon beginning July 1, 2003 and an additional $.02 per gallon beginning July 1, 2004. The Department used a base of 795 million gallons for FY 2004 to calculate the revenue from these tax increases. The Department also states that the increase in highway fund revenue will result in an increase in local highway aid delayed by a year because the calculation is based on 12% of the revenue change in the prior fiscal year.